As energy dynamics shift across the UK, Drax is charging ahead with strategic investments and operational upgrades that reinforce its role as a cornerstone of the nation’s low-carbon future.
Drax is making bold moves to align with the UK’s evolving energy priorities, cementing its position as a vital player in the transition to secure, flexible and low-carbon power. Central to this effort is a newly secured four-year contract beginning in 2027, which will see Drax’s Selby power station deliver critical dispatchable electricity during periods of high demand. This ensures a reliable flow of low-carbon energy when it’s needed most, directly supporting the country’s grid stability and decarbonisation goals.
Alongside this, Drax is transforming its iconic Cruachan Power Station in Scotland, marking its 60th year with an £80 million upgrade. These enhancements will boost the station’s ability to store and release energy, a function that becomes increasingly essential as renewable sources like wind and solar expand across the UK’s energy mix. Cruachan’s role as a giant battery, absorbing excess renewable energy and discharging it when demand peaks, is pivotal to the country’s net-zero ambitions.
While the company is pausing its proposed 600MW Cruachan II expansion due to rising costs and market uncertainty, the strategic groundwork has been laid. Drax remains well-positioned to reactivate the project when conditions are more favourable, keeping future capacity firmly on the horizon.
Despite these challenges, Drax’s financial outlook remains strong. The company expects 2025 core profits to reach the top end of analyst forecasts, driven by resilient performance in biomass generation and pellet production. Drax continues to provide approximately 6% of the UK’s total electricity, underlining its importance in the national energy landscape.
These initiatives highlight Drax’s forward-looking approach—investing not just in infrastructure, but in the reliability and adaptability that a modern grid requires. As the UK scales up its reliance on intermittent renewables, the role of flexible, dispatchable power becomes ever more crucial. Drax’s commitment to balancing innovation with stability makes it a compelling proposition for investors looking at the future of sustainable energy.
Drax Group plc (LON:DRX), trading as Drax, is a power generation business. The principal downstream enterprises are based in the UK and include Drax Power Limited, which runs the biomass fuelled Drax power station, near Selby in North Yorkshire.
